7/25/2019 paramountvalue_2014

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DCF Valuation: Paramount before Takeover

Given Data

Year EBITDA Depreciation CapEx WCapital A!!et "ee!timate# Terminal

Inve!tment $ale! EBITDA Value

1994 660.6 162 160.1 45.6 0 660.6

1995 737 172 177.3 62.1 900 737

1996 790.8 184 176.7 66.5 0 751.26

1997 848.4 196 202.9 71.2 0 805.98

1998 910.1 209 216.6 76.2 0 864.595 12741.4

Calculations

Year Tc %&'Tc(x %Tc(xDep Free Ca!) Terminal PV Factor PV

EBITDA Flo* %FCF( Value at &+ ,

1994 0.5 330.3 81 205.6 0.9090909091 186.9090909091

1995 368.5 86 1115.1 0.826446281 921.5702479339

1996 395.4 92 244.2 0.7513148009 183.4710743802

1997 424.2 98 248.1 0.6830134554 169.4556382761

1998 455.05 104.5 266.75 12741.4 0.6209213231 8077.037708552

Total Firm Value -./0122/34++.&5